bitcoin.com reviews|In This ArticleHow the Scam WorkedDOJ Sends a Clear MessageWhy This Seizure MattersPublic and Privat

In one of the largest crypto crackdowns to date, the U.S. Department of Justice has seized $225.3 million in digital assets linked to a network of shady investment scams. The operation targeted a growing wave of fraud known as “pig butchering,” where victims are lured into fake crypto investments through personal messaging and social media. This marks the biggest crypto seizure ever handled by the Secret Service. The DOJ confirmed that this case sets a new record for the largest digital asset seizure handled by the Secret Service.

How the Scam Worked

The fraud schemes used slick social engineering tactics. Victims were approached online, often through dating apps or messaging platforms, and slowly convinced to trust the scammers. The criminals posed as financial advisers or love interests, guiding victims into investing in fake crypto platforms. Once funds were deposited, the scammers vanished.

Today, Matthew R. Galeotti of @DOJCrimDiv announced a civil forfeiture complaint to seize $225.3M in cryptocurrency tied to investment fraud & money laundering. The funds were traced through a sophisticated blockchain network used to scam 400+ suspected victims. pic.twitter.com/pBEN8Mjrfd

— Criminal Division (@DOJCrimDiv) June 18, 2025

Law enforcement uncovered a web of wallet addresses used to launder stolen funds across hundreds of thousands of transactions. Blockchain analysis helped authorities trace these digital breadcrumbs back to centralized points, ultimately leading to the seizure. Investigators traced the stolen funds across wallets and froze nearly $225 million after building a case with blockchain forensics.

DOJ Sends a Clear Message

Matthew Galeotti of the DOJ’s Criminal Division said this is part of a broader push to protect everyday investors. The scale of the fraud was huge. According to the DOJ, more than 400 victims were affected by these sophisticated online crypto scams, many of whom lost their life savings.

U.S. Attorney Jeanine Pirro emphasized that this is not just about catching bad actors; it is also about trying to recover funds and return them to victims. The FBI echoed that sentiment, reaffirming its focus on dismantling fraud networks targeting Americans.